BA THREATENS TO FAVOUR MADRID OVER HEATHROW FOR EXPANSION
By Pilita Clark and Richard Milne in London
Published: June 11 2010 03:00 | Last updated: June 11 2010 03:00
British Airways will expand at Madrid rather than Heathrow after its planned Iberia merger if the UK fails to address increased demand now that it has scrapped plans for a third runway at the UK's biggest airport, Willie Walsh warned yesterday.
"You've got a fantastic air-port in Madrid that has excess capacity that the Spanish government has invested in, that Madrid's local government has invested in, and we'll grow there," the BA chief executive told the Financial Times in a video interview.
"Growth is not going to go away. Growth will just leave the UK and go to other parts of Europe. BA will be able to access that growth because our assets are mobile and we can focus on developing Madrid rather than . . . London."
The UK government confirmed last month that it would not allow new runways at Heathrow, Gatwick and Stansted, causing frustration in the aviation industry.
Ministers say increased demand for air travel in the south-east of the UK - predicted to grow from 117m passengers in 2000 to 300m in 2030 - can be catered for by regional airports and high-speed rail links.
But some in the industry are unsure how such plans will work, especially since Heathrow is the only true international hub airport in Britain.
His comments come as BA faces fresh industrial action in the bitter dispute with cabin crew.
Asked if he was worried the dispute would see BA lose corporate travel customers, he said: "No, I'm not. My sole worry is about long-term viability.
"These customers want to see BA succeed. We've had fantastic support from our corporates . . . from our regular customers."
The Unite union, which represents most of BA's 13,400 cabin crew, has written to the airline to notify it that it plans to ballot for another strike.
http://www.ft.com/cms/s/0/acbaf13c-74f6-11df-aed7-00144feabdc0.html
By Pilita Clark and Richard Milne in London
Published: June 11 2010 03:00 | Last updated: June 11 2010 03:00
British Airways will expand at Madrid rather than Heathrow after its planned Iberia merger if the UK fails to address increased demand now that it has scrapped plans for a third runway at the UK's biggest airport, Willie Walsh warned yesterday.
"You've got a fantastic air-port in Madrid that has excess capacity that the Spanish government has invested in, that Madrid's local government has invested in, and we'll grow there," the BA chief executive told the Financial Times in a video interview.
"Growth is not going to go away. Growth will just leave the UK and go to other parts of Europe. BA will be able to access that growth because our assets are mobile and we can focus on developing Madrid rather than . . . London."
The UK government confirmed last month that it would not allow new runways at Heathrow, Gatwick and Stansted, causing frustration in the aviation industry.
Ministers say increased demand for air travel in the south-east of the UK - predicted to grow from 117m passengers in 2000 to 300m in 2030 - can be catered for by regional airports and high-speed rail links.
But some in the industry are unsure how such plans will work, especially since Heathrow is the only true international hub airport in Britain.
His comments come as BA faces fresh industrial action in the bitter dispute with cabin crew.
Asked if he was worried the dispute would see BA lose corporate travel customers, he said: "No, I'm not. My sole worry is about long-term viability.
"These customers want to see BA succeed. We've had fantastic support from our corporates . . . from our regular customers."
The Unite union, which represents most of BA's 13,400 cabin crew, has written to the airline to notify it that it plans to ballot for another strike.
http://www.ft.com/cms/s/0/acbaf13c-74f6-11df-aed7-00144feabdc0.html
